Yahoo Finance Interested In The Star Entertainment Group Limited (ASX:SGR)? Here's What Its Recent Performance Looks Like
For investors with a long-term horizon, assessing earnings trend over time and against industry benchmarks is more valuable than looking at a single earnings announcement in one point in time. Investors may find my commentary, albeit very high-level and brief, on The Star Entertainment Group Limited (ASX:SGR) useful as an attempt to give more color around how Star Entertainment Group is currently performing.
Check out our latest analysis for Star Entertainment Group
How Well Did SGR Perform?
SGR's trailing twelve-month earnings (from 30 June 2019) of AU$198m has jumped 34% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 8.9%, indicating the rate at which SGR is growing has accelerated. What's enabled this growth? Well, let’s take a look at whether it is merely due to an industry uplift, or if Star Entertainment Group has seen some company-specific growth.
In terms of returns from investment, Star Entertainment Group has fallen short of achieving a 20% return on equity (ROE), recording 5.3% instead. Furthermore, its return on assets (ROA) of 4.2% is below the AU Hospitality industry of 7.6%, indicating Star Entertainment Group's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Star Entertainment Group’s debt level, has declined over the past 3 years from 7.7% to 6.2%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 30% to 31% over the past 5 years.
What does this mean?
Though Star Entertainment Group's past data is helpful, it is only one aspect of my investment thesis. While Star Entertainment Group has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I suggest you continue to research Star Entertainment Group to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for SGR’s future growth? Take a look at our free research report of analyst consensus for SGR’s outlook.
Financial Health: Are SGR’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 30 June 2019. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
